Energy Spike Clips Airline Stocks

Investing.com - Airline stocks were rising on the back of a strong economy earlier this year, but the spike in oil prices has erased those gains and more. The popular U.S. Global Jets exchange traded fund, which invests in both U.S. and international airlines, is now down 5%.With jet fuel prices up 55% over the past 12 months, analysts say airlines are facing a difficult choice in a competitive environment with the peak summer travel season just a month away. They can raise prices or cut back on flights.Both Delta Air Lines (NYSE:DAL) and American Airlines raised air fares at different times recently only to reverse the move when other airlines failed to match the increases. Analysts still expect the airline industry to make a profit this year, but it will be lean compared to previous years.